When a disaster strikes—whether it’s a storm, fire, or water damage—most homeowners turn to their insurance companies for help. The insurance company often sends an adjuster to assess the damage and prepares a repair estimate using Xactimate, the industry-standard software for property claims.
While Xactimate is widely trusted by insurance professionals, many homeowners don’t realize that errors or omissions in an Xactimate estimate can leave them thousands of dollars short if they don’t review it carefully.
Here’s what you need to know.
What Is Xactimate?
Xactimate is software used by insurance adjusters and contractors to estimate repair costs for property damage. It calculates labor, materials, and overhead to create a “fair” price for repairs.
While the software itself is accurate, it is only as good as the information entered. If your adjuster or contractor makes mistakes—or intentionally underestimates items—you could receive far less than your property actually needs.
Common Ways Xactimate Estimates Can Underpay You
- Missing Line Items
Many estimates skip critical repairs, such as mold remediation, water mitigation, or minor structural repairs that add up quickly. - Incorrect Quantities
An adjuster may underestimate the square footage of damaged flooring or the number of sheets of drywall needed. Even small mistakes multiply into thousands of dollars lost. - Low Material Costs
Xactimate uses pricing databases, but they may not reflect local market conditions. Using cheaper materials than what is needed can reduce your payout. - Omitted Labor Costs
Labor rates vary by region. If the estimate uses outdated or low labor rates, you’ll have less money to complete repairs. - Depreciation or Deductibles Misapplied
Sometimes, items are depreciated incorrectly or deductibles are miscalculated, reducing your settlement unfairly.
Why Reviewing Your Xactimate Estimate Is Critical
Even a minor error in an Xactimate estimate can result in a shortfall of thousands of dollars. Homeowners often only realize the mistake after trying to pay contractors and seeing their insurance check fall far short.
By reviewing your estimate before accepting it, you can:
- Ensure all damages are accounted for
- Verify material and labor costs reflect your area
- Catch errors in quantities or scope
- Avoid long-term financial loss
How a Claims Consultant Can Help
A property claims consultant or public adjuster can review your Xactimate estimate line by line. They can:
- Compare your estimate to actual repair costs
- Identify omitted or undervalued items
- Provide a detailed report for you or your contractor
- Negotiate with your insurance company on your behalf
Even if you’re comfortable with DIY solutions, a professional review can often increase your settlement by 10–50% or more, depending on the complexity of your claim.
Steps to Protect Yourself
- Request a Copy of the Xactimate Estimate
Don’t rely on verbal assurances—always get the written estimate. - Review the Scope
Check every line item and ensure it reflects your actual damage. - Consult a Professional
A claims consultant can identify missing items and provide guidance. - Document Everything
Take photos, videos, and keep receipts. These documents strengthen your case.
Bottom Line
Insurance companies use Xactimate to streamline the claims process, but their estimates are not always perfect—and they are rarely in the homeowner’s favor.
If you want to avoid leaving thousands of dollars on the table, make it a priority to have your Xactimate estimate professionally reviewed before signing off on any insurance payout.
Call to Action
If you’re unsure whether your Xactimate estimate is accurate, our team of property claims consultants can review it for you and help ensure you get the settlement you deserve. Contact us today for a free claim review.
